Central Excise - Chapter 37 - X-ray films, Graphic art films - Whether cutting, slitting into smaller sizes and repacking amounts to manufacture - Reference from C. & A.G. - Regarding - Central Excise - 23/88-CX.3

Central Excise - Chapter 37 - X-ray films, Graphic art films - Whether cutting, slitting into smaller sizes and repacking amounts to manufacture - Reference from C. A.G. - Regarding Circular No. 23/88-CX.3 Dated 5-9-1988 [From F. No. 119/1/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Chapter 37 - X-ray films, Graphic art films - Whether cutting, slitting into smaller sizes and repacking amounts to manufacture - Reference from C. A.G. - Regarding. Attention is invited to the Collector of Central Excise, Madras's letter C. No. V/Ch. 37/30/3/88-CX.1, dated 19-7-1988 copy appended below on the subject mentioned above. The matter has been examined. 2. The Ministry had, in consultation with the Office of the Comptroller and Auditor General of India, taken a view earlier that the process of cutting into smaller sizes and repacking of Jumbo rolls of sensitised photographic paper on which the duty of customs including c.v. duty has been paid, would not amount to 'manufacture' for the purpose of levying central excise duty. On the same lines, this Ministry is also of the view that the process of slitting into required width and cutting into required length of duty-paid imported jumbo rolls of cinematographic films, graphic art films, industrial x-ray films and medical x-ray films cannot be treated as a process of 'manufacture' for the purpose of levying central excise duty. It has been reported that, in the case of duty-paid imported jumbo rolls of cinematographic films, the process of perforation is also carried out in addition to the process of cutting and slitting. The Board is of the view that the process of perforation also cannot be treated as a process of manufacture since the cinematographic films in question will remain cinematographic films only both before and after perforation. It is advised to take suitable action in accordance with the above guidelines with regard to assessment of the goods in question.